U.S. stock futures fell on Tuesday as investors cautiously weighed the likelihood of a rate cut ahead of key jobs data and what the increased likelihood of a Trump victory could mean for markets.
Dow Jones Industrial Average futures () and S&P 500 futures () both fell about 0.4%, after the gauges posted small closing gains to start the third quarter. Contracts on the tech-heavy Nasdaq 100 () led the way lower, falling about 0.5%.
Stocks are faltering as the market plays it safe in a trading week dominated by Friday’s crucial June jobs report and shortened for the July Fourth holiday. Doubts are mounting over whether stocks can extend their first-half rally, leaving investors wary of signs of economic strength that could undermine momentum.
Jerome Powell is set to speak at an ECB meeting on Tuesday, and investors will be listening intently to the Federal Reserve chairman’s views on the trajectory of inflation and the state of the labor market. He is also scheduled to deliver a talk on weekly job openings, which will similarly feed into expectations for rate cuts.
Meanwhile, political risk is on the minds as Wall Street assesses what a Trump election victory could mean for markets amid growing speculation that Biden will drop out of the presidential race. The 10-year Treasury yield (^TNX) fell slightly on Tuesday after rising the day before amid that debate.
On the business front, deliveries of China-made electric cars from Tesla (TSLA) fell 24% in June amid a fierce price war. Shares fell more than 1% in premarket trading after gaining 6% at the close as the market awaited data on the automaker’s second-quarter production and deliveries.
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